UBS CEO Gruebel: We're Keeping Investment Banking
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Amid recent turmoil, UBS (NYSE: UBS) said it will keep it's investment banking division.
CEO Oswald Gruebel made the announcement just days after a "rogue trader" ended-up costing UBS $2.3 billion in profits on trading misses. Following the loss, Swiss politicians have pressured the bank to either scale-down or spin off its investment bank.
Gruebel made the announcement in a closed meeting Tuesday, saying the investment banking division will be kept and integrated into its wealth-management division. Gruebel also said UBS is in a better capital position than it was two years ago.
Commenting in a Swiss newspaper over the weekend, Gruebel said he has no plans to resign his position, though some speculate the Board may engage in discussion to evaluate positions on retaining him as CEO. But that may not be the right move for investors, as Rochdale's Dick Bove called Gruebel "extraordinarily impressive," and the right person to lead UBS.
UBS is up 1.8 percent early Wednesday.
CEO Oswald Gruebel made the announcement just days after a "rogue trader" ended-up costing UBS $2.3 billion in profits on trading misses. Following the loss, Swiss politicians have pressured the bank to either scale-down or spin off its investment bank.
Gruebel made the announcement in a closed meeting Tuesday, saying the investment banking division will be kept and integrated into its wealth-management division. Gruebel also said UBS is in a better capital position than it was two years ago.
Commenting in a Swiss newspaper over the weekend, Gruebel said he has no plans to resign his position, though some speculate the Board may engage in discussion to evaluate positions on retaining him as CEO. But that may not be the right move for investors, as Rochdale's Dick Bove called Gruebel "extraordinarily impressive," and the right person to lead UBS.
UBS is up 1.8 percent early Wednesday.
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